Reliance Industries (RIL) has emerged as one of the leading bidders to acquire bankrupt Sintex Industries. As per report, in partnership with Assets Care & Reconstruction Enterprise (ACRE), RIL has offered a Rs 2,863 crore resolution plan that includes 10 per cent equity to lenders. The RIL offer includes payment of Rs 2,280 crore to financial creditors, equity infusion of ₹500 crore for working capital requirements and a Rs 83 crore payment to employees and trade creditors.

RIL will hold 79 per cent share in the company while, ACRE will hold 11 per cent and the remaining 10 per ent will go to lenders after the acquisition. RIL will avail debt of Rs 2,349 crore and infuse Rs 500 crore as capital. ACRE, an Ares SSG-backed asset reconstruction company (ARC), will issue security receipts for Rs 14 crore to lenders. Details of the Welspun offer aren't available. Lenders to Sintex Industries got four firm resolution plans last month. Besides RIL, Welspun, GHCL and Himatsinka Ventures are the other three bidders.

Rieter plans to install a full system at its Spinnova plant in Jyväskylä, Finland, by the end of 2022. As per a Knitting Industry report, the industrial scale spinning facility will enable Spinnova to streamline commercial textile development, enhance brand collaborations and further improve market entry capabilities.

The spinning line comprises a complete system of Rieter machines. The UNIblend A 81 will start with an initial mix of 70 per cent cotton and 30 per cent wood-based fiber on its way to achieving a 100 per cent wood-based yarn. The proximity of a spinning facility will make a huge difference in the company’s commercial phase, says Janne Poranen, CEO and Co-Founder Spinnova. It will enable the company to make fast trials, not lose lead time, and test smaller batches than before. This will significantly improve the textile R&D with our wood-based Spinnova fibre.

In-house trials with the G 38 ring spinning machine already showed promising results. Thanks to its Compact drum compacting device, the G 38 is fully flexible in producing both high quality ring and compact yarns. It is linked to the Autoconer X6automatic winder and thanks to the compacting device, Spinnova can easily switch between ring yarn and compact yarn production. The fully automatic R 70 rotor spinning machine, known for its productivity, outstanding raw material utilization and low energy consumption, can produce up to four different yarn types at once, which will be important as the trials proceed.

Innovative world market leader Karl Mayer reorganized its support activities in India in 2O21. It transferred its service and spare parts support for customers in the warp knitting and technical textiles sectors from Ahmedabad to the Stoll site in Noida. The Indian subsidiary, now operating under the new name Karl Mayer Stoll India, began operations as early as April 1. The merger of the Group’s warp knitting and flat knitting activities resulted in a wide range of synergies in the service, care solutions and academy sectors, with benefits for the customers.

In the warp preparation market for weaving, Karl Mayer Textile Machinery India continues to offer the best support. It combines the know-how and experience of almost 70 service specialists, who are active from different offices in all the important industry centres. The decentralized structure under one roof enables

Rising COVID cases are causing labor shortage for garment exporters from Noida and leather goods exporters from Mumbai, Delhi and Kolkata. Around 3,000 garment export units are currently facing a shortage of around 3 lakh tailors. This is causing concerns amongst exporters having orders from US and Europe. Leather goods exporters flooded with orders from global markets are also worried over the shortage of manpower due to a spike in COVID cases. They have taken up the matter with the Uttar Pradesh government as well, informs Lalit Thukral, President, Noida Apparel Export Cluster.

Rising cotton prices is adding to the woes of these exporters.. Cotton prices which were at Rs 37,000 per candy of 335 kg in September 2020 have gone to up to Rs 70,000 in December 2021, adds Thukral. This may cause delay in delivery of orders leading to loss in business that may shift to other countries like Bangladesh and Vietnam, he adds further.

Leather exporters in Kolkata, Mumbai and Delhi are also witnessing a decline in workforce due to rising covid cases among them. The workers, who are double vaccinated, are falling prey to this new variant of COVID, impacting manpower, adds Ramesh Juneja, Regional Chairman, Council of Leather Exports.

India is on course to meet its export target of $400 billion by March 2022 as it exported $100 billion in the third quarter (Oct-Dec) of current fiscal 2021-22. Global demand for Indian goods has been improving since December, with exports hitting a monthly high of $37.29 billion. Anant Srivastava, Director, Home Textile Exporters Welfare Association (HEWA), says this is the highest ever export in a month so far and there is no doubt that exports will touch $ 400 billion in the next quarter.

As per Piyush Goyal, Commerce and Industry Minister, India’s exports of cotton yarn, fabrics, made-up, and handloom products are gaining more traction and have successfully registered a growth rate of 45.73 percent in the one year, December 2020 to December 2021. Vikas Singh Chauhan, Director, HEWA believes India’s export success story will continue this year as well. But to achieve the target of $1 trillion in 2022-23, efforts will have to be intensified.

Indian economy is showing positive signs as it has already crossed the $300 billion exports mark in three quarters. The increase in exports is also due to some favorable steps taken by the government, such as expansion of RoSCTL, facility of RoDTEP, payment of pending dues of Rs 56,000 crore in September for export promotion schemes, and relaxation to factories during the second wave of lockdown.

Industry leaders believe, high freight charges, raw material cost, lack of major FTAs, fully functional alternative routes like the International North-South Transport Corridor (INSTC) are some of the challenges to achieving $1 trillion exports and $5 trillion GDP in the next few years. India also needs to put in place a mechanism to control the rising cost of raw material in cotton to achieve the textile export target of $100 billion in the next few years, they say.

As per the Confederation of All India Traders (CAIT) India’s apparel sales are likely to decline by almost 30 per cent across various categories due to the rising Omicron cases. A survey conducted by the traders’ body, between January, 1 and 6, 2022 shows, India’s domestic trade declined 45 per cent in 36 cities. In some apparel manufacturing hubs like Delhi-NCR, majority of migratory workers failed to join factories and are still in villages.

Lalit Thukral, President, Noida Apparel Export Cluster (NAEC) says, the cluster is in touch with the workers and have assured them not to worry about anything. Few PPEs manufacturers are again witnessing increasing orders from the domestic market and enquiries from overseas. At the same time, new order booking for garments is expected to be a little slow as buyers, as well as Indian suppliers, are doubtful about the way things will shape up in next one or two months.

Rajeev Bansal, Managing Director, Celestial Knits & Fabs, Noida and National Vice President, Indian Industries Association (IIA),says, orders booking has been a little slow since last few days as buyers are also very careful about the overall situation in their countries as well as in suppliers’ countries.

Chip Berg, President and CEO, Levi Strauss & Co will be awarded the Person of the Year award by the American Apparel & Footwear Association at the 2022 American Image Awards, on April 26 at The Plaza Hotel in New York. Bergh has led the company to continued global expansion and through a dramatic turnaround. He has been widely recognized for his position on values-driven leadership, including his statements and actions on issues like gun-violence prevention, climate change and social and racial justice.

Gap Inc will receive the Company of the Year award. Through its Old Navy, Gap, Banana Republic and Athleta brands, Gap has omnichannel capabilities to bridge the digital world and physical stores to enhance its shopping experience, drumming up fiscal year 2020 net sales of $13.8 billion.

Designer of the Year award will be given to Prabhal Gurung for his eponymous collection that blends modern luxury, style and glamour. The Fashion Maverick Award will be awarded to ThirdLove a women’s lifestyle brand focused on elevated essentials across bras, underwear, and loungewear. The brand supports the broader community through its TL Effect program, created to encourage and support early-stage companies run by female entrepreneurs of color and through the donation of more than $50 million worth of products to women in need.

The Eco Steward of the Year award will be given to The Ellen MacArthur Foundation’s Fashion Initiative for its “Make Fashion Circular” program that is leading international efforts to stop waste and pollution by creating a circular economy for the industry, where products are used more and are made to be produced again from safe, recycled or renewal inputs. The event will be emceed by Segun Oduolowu of People TV and will benefit the Council of Fashion Designers of America Foundation for the sixth year.

Credit analysts at Moody’s Investors Service have predicted European retail and apparel sector will be stable for the year 2022 as they expect business to return to normal over the next t 12 to 18 months.

Shipping delays and rising costs to impact margins

They believe, vaccine rollout and accumulated savings will help sustain consumption in retail. Supply chain disruptions will be manageable for most retailers. However, global shipping delays and an increase in raw material and transportation costs are likely to impact profit margins in the year.

The sharp rebound in apparel consumption during spring and summer this year led to softening of sales during. Retail sales peaked in April with sales from the region rising 25 per cent over last year. Sales in Spain and France reached 43 per cent of last year. However, they slowed down in September to 6 per cent and 7 per cent respectively. Sales in Italy and the UK also declined to 7 per cent and 1 per cent respectively in September from 39 and 38 per cent in April. In the Netherlands, sales stabilized at 5 per cent in September from 11 per cent in April. Germany’s sales declined to 1per cent in September from 9 per cent in April.

Apparel sales to grow

In 2021, apparel sales grew 18.3 per cent and in 2022 they are expected to grow 11.5 per cent. In 2022, online e-tailers, luxury and sportswear firms will outperform their fashion counterparts, predicts Moody’s . Analysts predict, adjusted EBITDA for the German footwear brand Birkenstock, Next, Matalan and luxury fashion house Burberry will grow from 0 to 5 per cent in 2022. For German value chain CBR Fashion, Italian luxury firm Golden Goose, German sportswear brand Adidas, adjusted EBITDA will grow between 5 percent to 10 percent, Spanish premium mass chain Tendam and German off-price e-tailer Schustermann project a 10 percent to 20 percent adjusted EBITDA growth rate, while German value chain Takko and French design house Isabel Marant expect to grow by over 20 percent.

Focus on luxury and casual to continue

In 2022, retailers will continue to focus on luxury, discounts and casual apparels, say Moody’s analysts. However, earnings and margins will still lag pre-pandemic levels, they add. Retailers will continue their digital transformation and accelerate investments in artificial intelligence and customer analytics to improve the performance of their online platforms.

However, the outlook for the region is likely to turn negative if annual sales of the European companies dip. These companies face the risk of new shopping restrictions, sustained supply chain disruptions or prolonged inflationary pressures. To prevent it from moving to negative zone and converting into positivity, retailers need to accelerate economic growth. They also need to ease supply chain disruptions and soften inflationary pressures. The debt levels of these analysts have climbed in 2022. However, lessening of pandemic effects is likely to strengthen their economic recovery, though this recovery will vary according to region.

American sportswear giant, New Balance, has launched its iconic 574 sneakers’ collection for men, women and kids in India. First released in 1988, this timeless collection went on to become the first true go-anywhere footwear and has since become one of the most iconic representations of the brand.

In their latest iteration, the 574 sneakers have been crafted with premium material, cushioning and incredible support for those who value function as much as form. Recognised worldwide for its versatility, classic design and core grey colour synonymous with the brand heritage, the 574 sneaker is a symbol of ingenuity and originality - no matter how you wear it. The shoes blur the line between performance and everyday wear to make them truly the best of both worlds.

Representing a mix of new, different, uncomplicated, rugged, durable, and comfortable, the 574 sneakers have been adopted as a closet staple across the globe, which is why today, in its new avatar, the 574 collection is for everyone.

Available at New Balance stores in Select Citywalk and Pacific Mall in Delhi, Mall of India in Noida and Alpha One in Ahmedabad. The brand's apparel and footwear are also available online at TATA CLiQ.

In its 45th meeting held on September 17, 2021, the GST announced certain changes in the GST rates for footwear and textiles in order to correct the existing inverted duty structure. The Inverted Duty Structure scheme entitles a supplier to get a refund of the accumulated Input Tax Credit (ITC) under the provisions of section 54 of the Central Goods and Service Tax (CGST) Act, 2017. However, certain goods in the footwear and textile industry are not considered eligible for this refund. And, to correct this anomaly, the GST council recommended an increase in the rates on goods manufactured by the footwear and textile industry from 5 per cent to 12 per cent applicable with effect from January 1, 2022.

Profiteering by dealers may rise

As per a Business Today write up by authors Sandeep Sachdeva and Vishesh Mehrotra, even though the move aims to reduce the concentration of ITC in the hand of the industry players by increasing the rate of output GST, it would lead to profiteering by dealers by not passing of the benefits of tax reduction to consumers. As per a report tilted ‘Implementation of Value Added Tax (VAT) in India - Lessons for Transition to GST' by the Comptroller & Auditor General (C&AG) of India, released in June 2010, India has incorporated several laws under Section 171 of the CGST Act, 2017 check profiteering by businesses. These laws state, any tax reduction in the supply of goods and services need to be passed on to consumers by reducing the product prices. As per these laws, ITC also needs to pass on the benefits it gets on reduction in taxes on goods and services.

A long-term solution needed

Hence, to reduce ITC accumulation, the GST council has proposed to increase the output rates of taxes, with effect from January 1, 2022, for products manufactured by the footwear and textile industry. This would lead to a huge amount of tax rate rationalization across the industry, says the report

However, even though by increasing the rate of GST on footwear and textiles, the rate of accumulation of ITC would slowdown, it would still persist, albeit at a slower pace. Hence, stakeholders feel suppliers should either pass on the additional benefit by way of reducing the price of the goods or face the consequences under the anti-profiteering provisions.

According to the report, the new rule may lead to commercial disputes between the parties for renegotiation of price and concerning the application of anti-profiteering measures against an assessee. To avoid this, the footwear and textile industries need to analyze their existing contracts and pricing structure.